Capital Stewardship: Charting the Course to Profitable Growth

Overview

In the current environment of soft pricing and excess capital, reinsurers have to decide how to deploy this capital to generate returns that satisfy investors’ and/or shareholders’ expectations. The balance of options under consideration will include maintaining the status quo, returning capital to shareholders, pursuing organic growth or seeking merger and acquisition (M&A) opportunities. Evaluating the merits of each option and the interplay between the options is not an easy assessment, with the best capital stewards often employing a strategy encompassing all four approaches. An interactive PDF from Guy Carpenter.